BofA Data Shows Mixed US Consumer Spending in April

Key Spending Figures Show Mixed Signals

Bank of America card spending data for April revealed mixed consumer trends. Total spending per household increased 4.8 percent year-over-year and rose 0.6 percent month-over-month on a seasonally adjusted basis. This data indicates continued spending but with notable shifts across different sectors.

A Look at Sector Performance

The spending growth was uneven across categories. Higher gas prices drove an increase in fuel spending, while online retail purchases remained strong. Conversely, spending at department stores, home improvement retailers, airlines, and clothing stores saw declines. This reversed the gains recorded in March. The bank noted that while credit and debit card spending held up well, the support from fiscal stimulus such as tax refunds is now fading.

Economic and Market Impact

Bank of America projects a month-over-month increase of 0.4 percent for April in both retail sales excluding autos and the control group. These forecasts are slightly below consensus estimates. The spike in gas prices has cost consumers an estimated 25 billion dollars. Without relief at the pump, this could weigh more significantly on consumer spending in the coming months, especially as stimulus effects wane.

Summary Outlook

Consumer spending resilience in March and April was largely supported by fiscal stimulus. With this tailwind slowing, the sustained impact of high gas prices will be a critical factor to monitor. Future spending patterns may show greater sensitivity to energy costs and overall inflation.

FAQ

Q: What was the overall household spending change in April?
A: It rose 4.8 percent year-over-year and 0.6 percent month-over-month on a seasonally adjusted basis.

Q: Which sectors saw a spending decline?
A: Department stores, home improvement retailers, airlines, and clothing stores all recorded declines in April.

Source: Investing.com